What Does it Take to be Successful in Currency Trading

Success. Everyone strives for it; few achieve it. That’s true specifically in Forex trading. What does it take to be successful in currency trading?

An FX trader has odds against it from the start. Everyone wants a “bit” of his/her trading account.

From brokers to other market players, they all influence prices. Except for the retail trader.

Over five and a half trillion (with a T) dollars change hands on the FX market. Daily.

However, the retail size of this market is insignificant. In fact, it is so small you can ignore it.

About 6% of this substantial daily volume belongs to retail traders. Or, to regular Joe’s.

Let’s define the regular Joe in currency trading:

Typically has a job but wants to make more money.

Thinks he/she is smarter than the average and understands financial markets.

Wants to make a million in a week or so.

Instead, losses the first deposit almost certainly.

What does it take to be successful then? In this article we will cover:

How to make money with Forex

The traits of a successful trader

How to align your interests with the big guys

How to become a Forex trader

But above all, this article is about knowing yourself as a person. Or, as a person that wants to make it in currency trading.

You probably read many Forex success stories so far. But are they for real?

Is it really possible to reach profit trading consistently? To trade for a living?

The journey of a thousand steps starts with the first one. In this case, it begins with learning.

Knowledge is of More Value than Gold – the Moto of Currency Trading

King Solomon’s words apply perfectly here. When starting to learn how to trade Forex successfully, understanding the market comes first.

Namely, the forces surrounding the FX phenomena. As mentioned earlier, retail traders make a small part of the daily turnaround.

Who moves the market then? Here’s a list:

Forex brokers

Central banks

Treasury departments

Commercial banks

Liquidity providers

High-frequency trading industry

That is, to name only a few. Understanding what these entities do represents the first step in the journey to find out what does it take to be successful.

Because these forces move the market, a trader’s interest must align with them. Therefore, find out what their role in the market is.

Like to follow changes in monetary policy? When they come, someone needs actually to implement them.

For example, if the Fed (Federal Reserve of the United States) announces a bond-buying program, the market reacts in an instant. However, the actual buying starts later, and THAT will move the market too.

That’s just a short example of how forces in the market make prices move. As currency traders, we must align or face them.

How to Make Money Trading – Understanding Forex Brokers

Forex brokers fight like crazy for clients. For this reason, they advertise currency trading as a piece of cake.

Commercials like “currency trader for dummies” or stories about Maria, the sales lady making a profit, are everywhere.

Like football? Chances are your favorite team has a sponsor from the branch.

Brokers should have their interests aligned with their customer’s interests. But they don’t.

At least, not always.

Because trading implies buying and selling a currency against another one, tapping the interbank market is critical. But, also expensive.

If there’s already info about currency trading, why not learning? In the Forex market, pride comes with a price tag. An expensive one.

I’m not saying you shouldn’t create something new. But at least have a look at another people’s work and legacy and put everything together.

You’ll be surprised how much you’ll learn about currency trading. Moreover, you’ll learn what makes people succeed.

So, the right question should be: how to make profit when trading? If you’ll learn to do that, any material target becomes possible.

Because there’s no straight line to success in currency trading, it all depends on you. After all, that’s a rule in any area, not only in trading.

What Does It Take to Be Successful?

The following should be a guide for how to make it in currency trading. But the principles apply to all areas of life, not only to how we approach the market.

Expectations should be real. Or, calibrated.

It is entirely fine to want a million dollars fast. But is it real? Is it within your grasp?

So, keep it real, and you’re off to a good start. Have realistic expectations about what the market can offer. And, what you bring to the trading table.

You must bring time. And dedication.

If you think you’ll make it by trading two hours in the evening, think twice. You won’t.

To speculate, you need to be a shark. And at the same time, incredibly humble.

Take what the market gives. And respect the market.

How to Make Money on Forex – A Quick Guide

The beauty of currency trading is that the market is always open. Even when it isn’t (e.g., over the weekend), in fact, it is.

Events over the weekend influence prices. Sometimes what happens Saturdays and Sundays is more important than the economic news during the trading week.

Think of elections for a change. Recall the 2017 French elections result? They created a gap on all Euro pairs. Moreover, that gap started one of the most reliable trends in recent market price action.

Finance is a simple industry made complicated by people. It’s all about psychology and understanding the way to deal with human nature.

Having NO Position IS a Position

Overtrading is a nasty habit. So wrong, that it is the number one cause of losing when trading.

People feel the need to do something only because the market is open. However, that’s ridiculous if you think of it.

It’s only in your head. The market doesn’t move all the time.

In fact, statistics show it mostly consolidates. It needs a reason to move.

CHOOSE YOUR COURSE NOW AND START LEARNING FOREX TODAY!

Damyan is a fresh MSc International Management from the International University of Monaco. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders. When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among 500 other traders. He was awarded a cup and a certificate at an official ceremony in his university.

CHOOSE YOUR COURSE NOW AND START LEARNING FOREX TODAY!

Forexboat Pty Ltd (ABN: 29 609 855 414) a Corporate Authorised Representative (AR No. 001238951) of HLK Group Pty Ltd (ACN: 161 284 500) which holds an Australian Financial Services Licence (AFSL no. 435746). Any information or advice contained on this website is general in nature only and does not constitute personal or investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You should seek independent financial advice prior to acquiring a financial product. All securities and financial products or instruments transactions involve risks. Please remember that past performance results are not necessarily indicative of future results.

The information on this site may be accessed worldwide however it is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Forexboat Pty Ltd is not registered with any US regulator including the National Futures Association (“NFA”) and Commodity Futures Trading Commission (“CFTC”) therefore products and services offered on this website is not intended for residents of the United States.

Almost there!

Complete this form and click the button below to start your free training